Strategic Management

Introduction

From over the years, the need for strategy like innovation and technological evolution is very useful in making business profitable. The different tactics and techniques to recover the business downturn or gain additional profits is called strategic management, but is entirely based on the size of the business and its nature, vision, and objectives. The life of the business is guided by the goals for which can be measured on the business performance and employees participation. The essence of strategic management is to make the business reached the success out of the economic conditions and threats by standardizing procedures or processes.

Rationale

The management is a team that propels the business life. Strategic Management is another answer in satisfying the issues that revolves around the business society. There are changes that can occur which are mostly beyond the control of the management. The strategic planning can help the management establish different answers, and sometimes includes the consequences, when the economic crisis hits the firm and eventually develop these strategies that can be carried out for the next years.

A growing business can’t survive without the proper planning because newly-introduced businesses are the target of various competitors. Even a small type of business needs a strategy to maintain the operations or production. It involves the introduction the quality management principles and practices. The communication in building leadership is part of its unique adaptations.

The Strategic Management Perspective

Strategic management requires managers to take an integrative view of the organization and assess how all of the functional areas and activities that fit together to help an organization achieve its goals and objectives. This cannot be accomplished if only the top managers in the organization take an integrative, strategic perspective of issues facing the firms and everyone else are in isolated functional areas.

At the first quarter of the business life, the firm established the goals, objectives, vision and mission, and values are taken seriously. The goals are usually in profit-oriented and taking the competitive advantage over the competitors. The objectives of the business are connected to the vision and value statement of the business that can be the guidelines of the business while taking its step towards the success. And the mission is the things that the business needs to accomplish with the statement of the policies on how they can achieve their goals.

The importance of the vision, mission, and statement of values is to align the business in achieving the success. The strategies are needed to make the visions and missions possible. If the business did not commit itself in providing the business’s goals, then the business performance cannot be stabilized. The sudden change in management or in procedures can create a great impact in the business performance.

Added to that, if the business lacks the strategy, it only means that the business is not capable enough in market competition. The lack of strategy can be the source of the major problem that a business might face for the having the strategies are like preparing the business in taking certain actions but were measured well. The strategies are designed to plan the next actions for the business in case there are uncertainties or problems, and it is needed to accommodate with a good strategic plans.

Conclusions

A business needs a good strategic plan when upon entering the business society. It also needs an intense planning when the business starts to perform and plans cannot be ceases even if the business reached its economic downfall. The strategic management or planning answers the business behavior or issues that is beyond the control of the industry, such as inflation or climate changes. The strategy is a kind of attack by business performance. The concern of the strategy is fully concentrated in favor of the business line and nature, and acknowledging the existence of different economic factors and making it possible to turn these factors as one of the business’s advantage.

References:

Burack, E., Hochwarter, W., & Mathys, N., (1997) The New Management Development Paradigm, Journal of Human Resource Planning, 20(1)

Inception Pack (2007) What is Strategy? Vol. 3 [Online] Available at: http://theplanninglab.typepad.com/Inception_packs/TPL_Inception_Pack_vol_3.pdf [Accessed 07 Oct 2009].

Salisbury Public Works (2005) Strategic Management Plan [Online] Available at: http://www.ci.salisbury.md.us/publicworks/strategy/index.htm [Accessed 07 Oct 2009].

The Strategic Management Perspective: An Imperative throughout the Organization. Strategic Analysis [Online] Available at: http://www.mhhe.com/business/management/dess1e/pdfs/ch01.pdf [Accessed 07 Oct 2009].